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The Smart Grid is about more than just electricity. The grid will carry data as well as power, and the devices on it will be intelligent. So it will be used in enterprises for data gathering and environmental control, in addition to controlling power.
Billions of dollars will soon start pouring into Smart Grid development, from big companies like Cisco, IBM, Intel, and Google, as well as from the federal government, which will spend billions of dollars by itself for the Smart Grid.
Not surprisingly, the venture capital community smells a killing, so it's spending money there as well. But at least one venture capitalist warns that there may be a bubble in the making -- and bubbles always burst.
According to CNet, Diana Propper, a clean-tech venture capitalist at Expansion Capital Partners, said this at a recent panel:
"I worry that there's so much money being sloshed around, whether it's venture capital or corporate or government money, that it will be spent inefficiently. The risk of a bubble is real."On the other hand, a bubble isn't always a bad thing. In fact, Internet pioneer, 3COM founder, and Ethernet inventor Robert Metcalfe, believes bubbles are good things. Metcalfe is involved in green tech these days, and he argues that bubbles mean that a particular technology gets all the investment and attention that it needs in order to thrive. Although some people lose money during bubbles, he says ultimately it's good for the technology and the economy as a whole.
So will there be a Smart Grid bubble? Most likely, although it's not clear how large a bubble it will be. But Metcalfe is probably right -- the bubble means that the grid will actually become reality.
Bubble photo CC-licensed by Flickr user Jeff Kubina .
Re: Read Hot Flat and Crowded by
1. Longer distance transmission offers several benefits but, it is not a requirement of Smart Grid and its benefit is being greatly exaggerated.
2. This is the big one. The consumer can already choose when to run their dishwasher. What Smart Grid does is allow the power utility to choose when the consumer will be permitted to run their dishwasher. Or, offer the consumer the opportunity to turn their dishwasher off before the rate increases. An hour's notice for a rate increase is a major benefit for the consumer. Right? Hourly rate changes are good. Right?
3. The Smart Grid has nothing to do with renewable energy. That is generation and the Smart Grid is about distribution and control, it is not about generation.
4. I hadn't heard that for 8 months, until you said it.
Read Hot Flat and Crowded by
Read Hot Flat and Crowded by Thomas Friedman and you will get your answer.
The grid allows many great things to happen here are a few:
1. Allows power to be transported farther than ever before allowing for renewable sources like wind to power more of the country. Currently we can't even get power from one side of Texas the another. It dissipates out of the line before it can reach the other side
2. It allows the consumer to choose when and when not to use power. For example the dishwasher. YOu will be able to program it to run only when windpower is available at a certain price of you choosing. If you draw to much energy into your home you can sell it back to the gird and receive a discount on your bill
3. Will finally usher in renewable energy on a large scale and reduce our need for oil and coal.
4. WE DONT HAVE TO HEAR DRILL BABY DRILL ANYMORE!!!!!!!!!!!!!!!
What's So Great About It?
Smart Grid is the buzzword du jour, there's no doubt about it. But, beyond the well crafted marketing name, what is it? What's so great/green about it?
When I dig into it I only find not so new ways of automating the metering process and controlling the end user's consumption of electricity by shutting off their power when the power company sees fit to do so. I see tremendous opportunity for the power company to cut costs, receive government subsidy, and increase revenue while maintaining their grid load and not increasing generation.
The real benefit seems only to the power companies and the equipment vendors that will sell to the power companies. The end user gets less power and a higher price per kilowatt hour! What else do they get? How is it green? There is no mention of increased generation capacity or the greening of the generation, only restricting consumption and automating the restriction and billing process.
I see no new technology and even the "new" process is old news in many areas including my own. For years, my local utility has had programs that, for a minuscule discount, they install regulators that allow the utility to turn off the consumer's air conditioning/heating and water heater. Everyone that signs up regrets it in winter and laments the inconvenience of the system for the paltry $18/month off their utility bill.
I don't see the elimination of the meter reader as a benefit to me or the greening of anything. I only see cost savings for the utility who will certainly NOT pass it on to the consumer.
Smart Grid is epic green washing and with billions of dollars at stake, none of the players will say anything bad about it.